The robustness of an infrastructure business entity is determined by its ability to add new orders and grow order book position despite rapid execution of existing projects.
At IRB, our credible reputation, balance sheet strength and execution capabilities position us as one of the largest and most trusted players in the industry. This unique position enables us to be eligible for entire gamut of highway development projects that are rolled out. Under the NHAI annual pre-qualification norm, we are pre-qualified to bid up to ₹6,395 Crs size of single project.
We expect 3 BOT projects to become operational in the coming fiscal year, which is likely to generate healthy cash flows. Post the listing of our IRB InvIT Fund on May 2017, whereby six of our operational projects were transferred, we still have eight operational assets and another eight projects that are under implementation, of which three were received during the year. Thus, our ability to bag new projects and rapidly complete existing ones would enable us to steadily negate the decline in cash flows from the transferred assets.
As on March 31, 2017, our order book stands at ₹9,959 Crs, of which ₹5,436 Crs comprised new BOT projects giving us enough revenue visibility for the next 3 years. Going forward, we shall continue to focus on income generating BOT (Toll) projects that provides steady annual cash flows and can be offered to the IRB InvIT Fund. This synergy shall enable us to significantly improve our net worth and continue to maximise shareholder value.
New Projects Won
Udaipur-Gujarat border project
In the year under review, we bagged the project involving six laning of National Highway NH–8 (from 287.400 km to 401.200 km section) across the states of Rajasthan and Gujarat. The project awarded by NHAI is on DBFOT (Toll) basis under NHDP Phase-V and is scheduled to be completed in 910 days from the date of appointment.
We have offered NHAI a premium of ₹163.80 Crs for the project, the financial closure for which has been achieved.
113.80kms
Length of the project
₹2,100Crs
Estimated project cost as appraised by lenders
21 years
Concession period
Gulabpura-Chittorgarh project
The project awarded by NHAI involves six laning of Kishangarh-Udaipur-Ahmedabad section of NH-79 (from 90.000 km section near Gulabpura to 214.870 km section at the end of Chittorgarh bypass) in the state of Rajasthan. Awarded under NHDP Phase-V on BOT (Toll) basis, the project is scheduled to be completed in 910 days from the date of appointment.
We have offered NHAI a premium of ₹228.60 Crs for the project, the financial closure of which is in progress.
124.87kms
Length of the project
₹2,100Crs
Estimated project cost
20 years
Concession period
Kishangarh-Gulabpura project
The project awarded by NHAI involves six laning of Kishangarh to Gulabpura section of NH-79A and NH-79 in the state of Rajasthan. The project is awarded on DBFOT (Toll) basis under NHDP Phase-V. It is scheduled to be completed in 910 days from the date of appointment.
We have offered NHAI a premium of ₹186.30 Crs for the project, the financial closure of which is in progress.
90.00kms
Length of the project
1,550Crs
Estimated project cost
20 years
Concession period
